New Delhi: The Planning Commission has proposed anew to lift the embargo on foreign carriers from investing in the civil aviation sector. The proposal is expected to be taken up by the full body of the Planning Commission, at a meeting likely to be chaired by prime minister Manmohan Singh.
An earlier proposal to open up this segment of the sector to foreign airlines met resistance from the civil aviation ministry.
Finance ministry sources argue that the time has come to further liberalise FDI caps in this sector, as domestic airlines are now flying abroad and forging alliances with foreign airlines. The sector has matured considerably, they say.
While 49% foreign direct investment (FDI) is permitted in domestic airlines, foreign airline companies are barred from investing in this segment. NRIs are allowed to hold up to 100% equity in domestic airlines.